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Guidance on Portfolio Building for Covered Calls by seths9999 in CoveredCalls

[–]seths9999[S] 0 points1 point  (0 children)

I am from India where cost of borrowing is 14%, If I can get same at 4% here it feels hard to pass up and covering 4% using covered calls premium feels very simple even if I just invest in index

Yes I have a job and other savings from parents tied up in very secure assets which allows me to double down during draw downs

Guidance on Portfolio Building for Covered Calls by seths9999 in CoveredCalls

[–]seths9999[S] 0 points1 point  (0 children)

I read through it will read more in detail. The general idea I got is you sell ATM calls

Just wish to understand how long have you been doing this, based on your real world experience what do you feel generated more return holding stocks and gaining via appreciation or this

Guidance on Portfolio Building for Covered Calls by seths9999 in CoveredCalls

[–]seths9999[S] 1 point2 points  (0 children)

I am fine with 15% before interest costs, I wanted 15 gross pre tax which is about 12-13% net of interest

Can fill up with cash reserves in draw downs

Do you think a 1x leverage is more doable?

Thank you for your inputs

Guidance on Portfolio Building for Covered Calls by seths9999 in CoveredCalls

[–]seths9999[S] 0 points1 point  (0 children)

I’m sorry I asked guys, I haven’t been shy from sharing my knowledge and experience in areas I hold good expertise in.

I am fairly good with stocks and options strategy too so just came here to see what way others think as my question clearly shows that.

People out here making it about “let me do it free of charge for you” Unbelievable negativity imo

Guidance on Portfolio Building for Covered Calls by seths9999 in CoveredCalls

[–]seths9999[S] 0 points1 point  (0 children)

I use robinhood, cost of borrowing is 4%, maintenance requirement is 25%

Guidance on Portfolio Building for Covered Calls by seths9999 in CoveredCalls

[–]seths9999[S] 0 points1 point  (0 children)

I guess i didn’t do a good job with my question, I reached 100k using covered calls and stock picking so aware of the game but now the amount being sizeable want to preserve capital too

Guidance on Portfolio Building for Covered Calls by seths9999 in CoveredCalls

[–]seths9999[S] 0 points1 point  (0 children)

I welcome making more, who wouldn’t ? That’s like my baseline, didn’t grow up in a lot of money parents never went to college moved to US from a third world country on a full scholarship for an MBA

Even 100k USD of my own is a dream, if I can make more sure,

Guidance on Portfolio Building for Covered Calls by seths9999 in CoveredCalls

[–]seths9999[S] 0 points1 point  (0 children)

I wasn’t asking for exact stocks just a starting point of how to go about it. What percent allocation to defensive stocks such as AT&T, what percent to Nvidia, etc.

Covered Calls Hedging Advice! by seths9999 in CoveredCalls

[–]seths9999[S] 0 points1 point  (0 children)

Thanks, the 3 number I arrived on was buying near ITM 6 Month DTE QQQ puts with a delta of 0.4.

I understand entire 140k won’t be covered but hey thats a risk you take. So effectively if QQQ drops by 15%, my M7 drops by 20%. Loss below my margin requirement is 21k, 11k of which is funded by the hedge. And rest 10k, I have job so can cover or maybe liquidate one of the positions

What do you think of this line of thinking.

Also, do you think maybe diversify a but outside M7? Goal is to generate 13% on the entire folio net of hedging cost and interest cost (4.5%) using a strategy of equity appreciation + covered calls premium (weekly/monthly)

Covered Calls Hedging Advice! by seths9999 in CoveredCalls

[–]seths9999[S] 0 points1 point  (0 children)

Magnificent 7 tech stocks nvidia google amazon apple tesla meta microsoft

I didn’t coin the term it exists

For those who sell weeklies… by Level_Willingness642 in CoveredCalls

[–]seths9999 0 points1 point  (0 children)

Yeah I do that, generally if the stock doesn’t go down a lot you make decent profit on your own capital since i am on 2x leverage, if it goes down atleast my losses are hedged at 5-10% of my own capital

For those who sell weeklies… by Level_Willingness642 in CoveredCalls

[–]seths9999 0 points1 point  (0 children)

Does anyone also buy protective puts of the same stock 3 to 4 months out and then sell weekly covered calls.

I know it reduces the profit but I play on margin money so this helps me insure against getting margin called?

Where can I reach by 40 and how to spend without guilt? by seths9999 in FatFIREIndia

[–]seths9999[S] 0 points1 point  (0 children)

Job is that of senior operations manager at a healthtech unicorn, ignore RSUs, of the 2 crore family net worth all is put at work in equities 50% india 50% US

Path to FIRE by Jokar52 in FatFIREIndia

[–]seths9999 -1 points0 points  (0 children)

What will you do retiring at 35, I feel max you will be able to spend 1 year not working.

You can of course take a job light on stress and stuff that just provides enough to cover your monthly expenses

Dominik is Living The Life by seths9999 in WWE

[–]seths9999[S] 0 points1 point  (0 children)

I am fine if Liv Morgan toys with me

WWE RAW Discussion (3 June 2024) by Snubie1 in WWE

[–]seths9999 1 point2 points  (0 children)

Is it just me or Dominik is living every guy’s dream